Tesco Share Price Rises As Sainsbury Loses High Court Case
Shares in Tesco Plc (TSCO) got off to a good start this week. After opening on Monday morning at 189.05p, they initially dropped as low as 184.80p but recovered and rose throughout the afternoon closing the day at 192.90p, up 4.58% for the day and 12.25% for the week.
The rise came as Cantor Fitzgerald said that there is potential for Tesco to stabilise and begin rebuilding profitability over the medium to longer-term. Nonetheless, the broker reiterated its ‘Hold’ recommendation while Citigroup and Exane BNP Paribas have reiterated their ‘Neutral’ assessments in recent days.
The share price may also have been boosted as Sainsbury lost a legal battle on claims that Tesco’s Price Promise campaign was misleading, unfair and unlawful. London’s High Court dismissed the case against Tesco but Sainsbury has said that it is reviewing its options.